World Gold Council Report Explained: Gold Demand Overview in 2024
The year 2024 witnessed a record surge in gold demand, with total demand increasing by 1% year-on-year, reaching 4,974 tonnes. Central banks and investors played a key role in driving up prices, pushing gold to record levels.
Central bank purchases exceeded 1,000 tonnes for the third consecutive year, with a sharp acceleration in Q4 totaling 333 tonnes.
Gold investment reached its highest level in four years at 1,180 tonnes (+25%), strongly influenced by exchange-traded funds (ETFs).
Demand for gold bars and coins remained stable at 1,186 tonnes, with a shift towards increased bar investment at the expense of coin purchases.
Annual gold demand in the technology sector increased by 21 tonnes (+7%), driven by continued growth in artificial intelligence applications.
Conversely, jewelry demand declined by 11%, reaching 1,877 tonnes, due to rising prices that limited purchasing power, despite a 9% increase in spending on gold jewelry, which reached $144 billion.
Gold Price Performance in 2024
Gold prices reached record levels throughout the year, with an average Q4 price of $2,663 per ounce, marking the highest quarterly average ever. This pushed the annual average price to $2,386 per ounce (+23%).
This strong performance elevated the total value of gold demand to $382 billion, marking an all-time high. Compared to 2025 projections, where gold is expected to peak at $2,882, 2024 set a strong foundation for further growth.
Gold Investments: Strong Recovery Amid Economic Uncertainty
Gold investment soared 25% to 1,180 tonnes, fueled by growing demand for ETFs and high-net-worth investors:
- Gold ETFs recorded a second consecutive quarter of inflows, reducing total outflows for the year to just 7 tonnes, compared to significant losses in previous years.
- Bar and coin investment in China (+20%) and India (+29%) offset declines in Europe and the U.S..
- Western markets saw a decline in coin demand, as some investors took profits amid rising prices.
Gold Demand in Central Banks: Continued Accumulation
Central banks continued boosting their gold reserves, adding 1,045 tonnes, led by:
- Poland’s central bank, which added 90 tonnes, bringing its reserves to 448 tonnes.
- China’s central bank, which purchased 44 tonnes, with intermittent pauses throughout the year.
- India’s Reserve Bank, which made a massive addition of 73 tonnes, compared to 16 tonnes in 2023.
- Turkey’s central bank, which added 75 tonnes, while banks in Hungary, Serbia, and Georgia also increased their reserves significantly.
Jewelry Demand Declines Despite Higher Value
Global jewelry demand dropped by 11% to 1,877 tonnes, as record gold prices reduced purchasing volumes, even though total jewelry spending rose by 9%:
- China saw a sharp 24% decline, making India the world’s largest gold jewelry market.
- India showed resilience, with only a 2% decline, driven by strong demand during festivals and wedding seasons.
- The Middle East and Turkey experienced slight declines, with a rebound in Q4 due to lower prices.
- The U.S. and Europe recorded their worst jewelry demand in five years, affected by high living costs and lower disposable income.
Technology: Gold Demand Driven by AI Growth
Gold usage in technology increased by 7% to 326 tonnes, the highest level since 2021, with significant contributions from:
- Strong demand for AI-driven infrastructure.
- A continued rebound in consumer electronics, despite weak growth in premium smartphones.
Supply: Slight Growth in Mine Production and Recycling
Total gold supply rose by 1%, reaching 4,975 tonnes, driven by increases in mine production and recycling:
- Gold mine production hit a new all-time high of 3,661 tonnes.
- Recycled gold supply increased by 11% to 1,370 tonnes, the highest level since 2012, driven by record gold prices.
- Hedging activity by producers declined, reflecting strong expectations for continued price appreciation.
Outlook for 2025
Gold is expected to maintain its role as a key hedge against economic and geopolitical risks in 2025. Key forecasts include:
- Central banks are likely to continue purchasing gold at a strong pace, particularly amid geopolitical uncertainty.
- Gold ETFs are expected to recover, supported by anticipated interest rate cuts in the U.S. and Europe.
- Jewelry demand may remain under pressure, especially if prices remain elevated.
- Gold recycling is expected to increase, as high prices persist and global economic growth slows.
These statistics indicate that gold remains highly attractive as a safe-haven asset and long-term investment, supported by record central bank purchases, global market movements, and major economic trends.
